Autoliv Inc. Financial Update: Analysts Raise Price Targets Amid Strong Q2 Performance

Autoliv Inc., a leading developer, manufacturer, and supplier of automotive safety systems, has recently seen a surge in analyst confidence, with multiple financial institutions raising their price targets for the company’s stock. This positive sentiment follows a robust second quarter performance, marked by record sales and margins.

Analyst Upgrades and Price Targets

On July 21, 2025, Handelsbanken increased its price target for Autoliv to $130 (from $125) and reiterated its buy recommendation. Similarly, Kepler Cheuvreux raised its target to $125 (from $100), also maintaining a buy stance. These upgrades reflect growing optimism about Autoliv’s financial health and future prospects.

In Sweden, Pareto Securities adjusted its price target for Autoliv to 1,220 SEK (from 1,040 SEK) and upgraded its rating to buy from hold. These adjustments underscore the positive outlook among European analysts as well.

Strong Q2 Performance

Autoliv’s second quarter of 2025 was marked by significant achievements. The company reported record sales, operating income, and margins, alongside an earnings per share (EPS) of 20.87 SEK, up from 18.28 SEK in the same quarter of the previous year. Despite a 5% decline in revenue, the company’s organic sales growth stood at 3.4%, and its operating margin reached 9.1%.

Jefferies reiterated its buy rating on Autoliv stock, maintaining a price target of $140, further highlighting the confidence in the company’s trajectory.

Dividend Increase and Tariff Recovery

Autoliv announced a 3% organic sales growth and raised its Q3 dividend to $0.85, despite facing tariff headwinds. The company’s Q2 earnings call transcript revealed a solid recovery from tariff impacts, although concerns about the Chinese market remain.

Market Position and Future Outlook

Autoliv’s CEO, Mikael Bratt, stated that the company’s outlook for the second half of 2025 remains unchanged, reflecting a steady approach amidst market fluctuations. The company’s financial report for April to June 2025 highlighted a 4.2% net sales increase and a 9.3% adjusted operating margin, reinforcing its strong market position.

Conclusion

Autoliv Inc. continues to demonstrate resilience and growth potential, as evidenced by recent analyst upgrades and strong financial performance. With a market capitalization of 65.87 billion SEK and a price-to-earnings ratio of 11.18, the company remains a key player in the automobile components sector. As it navigates challenges such as tariff impacts and market uncertainties, Autoliv’s strategic focus on innovation and safety systems positions it well for sustained success.